Whether or not $50/mo is an unreasonable ask (it is), they have a budget and feel that even $85/mo is too far out of budget for their application.
Presumably they mean
$1.1/hr * 24hr/day * 30day/month = $792/month
Whether or not $50/mo is an unreasonable ask (it is), they have a budget and feel that even $85/mo is too far out of budget for their application.